Judgement lien: Question on resolving
Hi All,
I'm purchasing a New Jersey quad at a short sale cash price of $255K. The seller owes the bank circa $280K. We went into contract in March 2016, with an inspection shortly thereafter. Few weeks ago I learned the short sale was approved- yea! Well, the excitement has been some what short lived. Recently after running title I've come to learn of 3 judgement liens: 2 from the DMV from 19 years ago, each for about $800. No biggie. The last from 13 years ago is for $25K (abstract also says "plus costs" - not sure what that means). This judgement comes after losing or perhaps not contesting a lawsuit from a corporate entity. Note: It is unclear if any of these judgements are truly against the seller because he has somewhat of a common name.
The results from the title search were sent to the seller's attorney about 8 days ago with a request to sign an affidavit of title, stating the judgements aren't against him (but someone with a similar name). To date, I haven't heard back from the seller's attorney. I'm imagining at this point, the seller won't sign the affidavit because in part or in whole, the judgments are truly against him. Note: Bank's approval of short sale expires September 12th, 2016.
Question: What can I expect now? What options do I have? Will the bank who is the first lien holder negotiate with the owners of these other judgements (junior leans)? Will they do so by September 12th? Should my attorney and I reach out to the judgement owners and negotiate directly? What can I do to secure the property while minimizing my out of pocket expenses for paying off leans.
Thanks so much for your feedback.